Pricing is more than crunching numbers. At its best, Pricing is proactive, value-based, and collaborative. To be strategic, your Practice Group or Firm needs to understand the critical elements—costs, benefits, competition, differentiation—that factor into your Value Propositions for successful Price Negotiations.
“If you do not have a well-defined Pricing Strategy, then who, specifically, is setting your Prices?”
Your partners need help. The Great Recession turned the legal industry into a Buyers Market, giving power to our clients. Without any Price Negotiation training, Partners responded by giving away discounts, rather than trading off value. If we do not teach our attorneys how to negotiate, how do we expect them to protect the firm’s Pricing Strategy?
“Price Negotiation is the biggest hole in your Practice Group/Firm Pricing Strategy.”
“If you don’t know your value, why should you expect your prospect to?” Because buyers of professional services are more value-conscious than price-sensitive, Practice Group and Firm leaders need to focus on creating Value Propositions to appeal to buyers. This is where Finance needs to collaborate with Marketing.
Value Propositions are the biggest opportunity in your Pricing efforts.